Software companies upset by demands for royalties

Article Abstract:

Compuserve Inc has surprised a number of software vendors with its recent demand for royalties for any programs encoded in the Graphics Interchange Format (GIF). Such software programs enable Compuserve subscribers to access over 40,000 images available on the on-line service. GIF was developed by Compuserve in 1987 and is currently the most common format for storing, viewing and transmitting graphics images. Compuserve originally encouraged GIF's adoption without charging any licensing fees. GIF is based on an algorithm developed and patented by Unisys Corp in 1985. Unisys has also been demanding royalties from dozens of companies, including Compuserve. Critics of Compuserve and Unisys' efforts accuse the companies of trying to capitalize on the extraordinary growth of on-line information services. Compuserve and Unisys officials have stressed that the royalties, which amount to a few cents per software program, apply only to software companies and not to users.

Finance, Online information services, Copyright, Copyrights, Information services industry, Royalties (Intellectual property), Online information service, Vendor relations, CompuServe Corp., Patent Copyright Issue, Graphics Imaging Utility

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An Internet author of sexually violent fiction faces charges

Article Abstract:

University of Michigan student, Abraham Jacob Alkhabaz, also known as Jake Baker, has been jailed for publishing a sexually violent work of fiction about a classmate on the Internet, raising freedom of speech concerns. Magistrate Thomas A. Carlson of the Detroit Federal District Court says, although Baker never approached or spoke to the classmate, his writings were deemed the work of a dangerous, disturbed man who may have the potential to cause harm. Baker was arrested by FBI agents and charged with transporting threatening material across state lines. Baker faces a maximum of five years in prison. The number of cases involving computer networks and law-enforcement officials is on the rise, applying existing laws to the new arena of cyberspace. Baker says his story is protected by the First Amendment guarantee of free speech. His story, "Pamela's Ordeal," used the name of a classmate as the object of violet sexual fantasies.

Cases, Internet, Industry legal issue, Court Cases

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CUC will buy 2 software companies for $1.8 billion

Article Abstract:

CUC International plans to spend $1.8 billion in stock to acquire Sierra On-Line and Davidson & Associates, in a move CUC describes as the first step toward becoming the biggest provider of on-line content. CUC will give 0.85 share of its common stock for each of Davidson's 36 million outstanding shares and will give 1.225 shares of its stock for each of Sierra's 20 million outstanding shares. CUC may abandon the deal if its own stock falls below $29 a share. The acquisition puzzles many observers, since CUC is known as a discount reseller of goods and services, while Davidson makes the best-selling software education program and Sierra is the chief US maker of entertainment software. The announcement caused CUC's stock to fall $6.25 per share to close at $31.25, down 17%. In contrast, Sierra's shares climbed $7.375 to $34.50, while Davidson's stock gained $6 to close at $24.50.

All Other Personal Services, Miscellaneous personal services, not elsewhere classified, Misc Personal Services, Computer software industry, Software industry, Mergers, acquisitions and divestments, Service industries, Discount stores, Sierra On-Line Inc., SIER, Davidson and Associates Inc. (Torrance, California), CUC International Inc., CU, Company Acquisition/Merger

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